Strategic management of technology and innovation (E_BK3_SMTI)
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Vrije Universiteit Amsterdam (VU)
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Strategic Management of Technological Innovation
This is an elaborate summary for the 2019 version of Schilling's "Strategic Management of Technological Innovation". I used examples and images from the book. Everything you need to know is in this summary.
Test Bank for Strategic Management of Technological Innovation 7th Edition Schilling
Exam / Test bank for Innovation management (Grade: 8.5/10)
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Science, Business and Innovation
Strategic management of technology and innovation (E_BK3_SMTI)
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Summary Strategic Management of Technological
Innovation
Note from the summarizer: I did not include case reports or research briefs, but I
did add other examples and images from the book. Sometimes when I think it’s
better to look at the book, I included the page numbers so it’s easier to look it
up. I added headings for the chapters and subchapters, so you can navigate to
specific things more easily. I use italics for examples.
Schilling Chapter 1: Introduction
The Importance of Technological Innovation
- The increasing importance of innovation is due in part to the
globalization of markets foreign competition pressures firms to
constantly innovate.
- Advances in IT also speed up the pace of innovation.
- Innovation as a strategic imperative a firm that does not innovate
quickly finds its margins diminishing as its products become obsolete.
Technological Innovation: The act of introducing a new device,
method, or material for application to commercial or practical objectives.
“Innovation is the process of turning ideas into realty and capturing value
from them”
Innovation = theoretical conception + technical invention + commercial
exploitation
The Impact of Technological Innovation on Society
The aggregate impact of technological innovation can be observed by
looking at the GDP.
Gross Domestic Product (GDP): The total annual output of an economy
as measured by its final purchase price.
GDP per Capita: The GDP divided by the population.
- Growth in GDP per capita couldn’t be explained simply by looking at
growth in labour and capital inputs;
Solow argued that technological innovation increased the amount of
output achievable from a given quantity of labour and capital.
- GDP has its shortcomings when it comes to measure a standard of living,
but it does very directly relate to the amount of goods consumers can
purchase.
- Very loosely we can say: Technological innovation improves quality of
life.
Sometimes technological innovation results in negative externalities.
,Externalities: Costs/benefits that are borne/reaped by individuals others
than those responsible for creating them. Example: pollution.
- Technology is in its purest form knowledge to solve problems and
reach goals.
- Technological innovation is thus the creation of new knowledge that is
then applied to practical problems.
Sometimes innovation is introduced to hastily, which can have negative
consequences.
Innovation by Industry: The Importance of Strategy
The majority of effort/money invested in technological innovation comes
from industrial firms.
Innovation requires innovation strategies and management processes in
order to be developed successfully.
The Innovation Funnel
Most innovative products don’t become successful new products, only
about one in a few thousand.
The Strategic Management of Technological Innovation
- A firm’s innovation projects should align with its resources and
objectives, leveraging its core competences and helping it achieve its
strategic intent.
Development process should maximise the likelihood of projects being
both technically and commercially successful. In order to achieve these
things, a firm needs:
, a. An in-depth understanding of the dynamics of innovation (chapters
2-5)
b. A well-crafted innovation strategy (chapters 6-9)
c. Well-designed processes for implementing the innovation strategy
(chapters 10-13)
Schilling Chapter 2: Sources of Innovation
Innovation: The practical implementation of an idea into a new device or
process.
Innovation can arrive from many different sources:
- Inventors
- Users
- Research efforts from universities/government labs & incubators
- Private non-profit organisations
- Firms
Firms often have greater resources available than individuals and a
management system to work towards a collective purpose.
Networks of innovators are an important source of innovation and are
strengthened by the linkages between them.
Idea: Something imagined or pictured in the mind.
Creativity: The ability to produce novel and useful work.
Innovation starts with the generation of new ideas.
The degree of novelty of a new product is determined by:
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